Legislation Modifies Requirement to Provide Form-1095 to Employees

1/24/2025

Under the Affordable Care Act, employers must report information about the health coverage offered to employees, on a Form 1095-B or Form 1095-C, even though employees are not penalized for not having coverage. As the result of two bills recently signed into law, employers are no longer required to send employees a Form 1095.

Employees still have a right to request a Form-1095, and in that case, the Form-1095 must be provided by the later of January 31 or 30 days after the date of the request.  This requirement is effective for calendar year 2024 forms that must be furnished to employees in 2025 (and thereafter). Employers must still send Forms 1095 to the IRS!

ASR has sent our clients a notice that they may customize and use to notify their employees of this change and to allow employees to request a Form-1095. We recommend this notice either be prominently placed where all employees may access it or be electronically distributed to employees who have access to a computer as a regular part of their job.

If you have questions on this new distribution relief under the ACA, call ASR Health Benefits at (616) 957-1751 or (800) 968-2449.